Government plans miss fuel duty opportunity, logistics says

Logistics and Supply Chain News

Speaking in response to today’s (23 September 2022) government announcement of its Growth Plan, Kate Jennings, Director of Policy at Logistics UK, comments: “Logistics UK welcomes government’s actions to help address growing business costs, namely energy prices. Additional measures announced today, such as changes to IR35 and National Insurance contributions, will give logistics businesses, including SMES, welcome flexibility.  

“Investment zones to support further industrial and commercial developments nationwide are a positive step. Logistics is a growing sector, which already supports many of the ‘levelling up’ regions of the UK. To maximise the potential growth opportunities of these zones, it will be important to include the logistics industry in the delivery of these proposals.  

“However, there is a missed opportunity on fuel duty. Even with the changes announced this morning, energy – including fuel costs – will be rising to 28% of business costs over the next year. Diesel is the single biggest operating cost for logistics businesses, which drive all sectors of UK PLC. In the six months to 1 July 2022, diesel costs for operators rose by almost 50%. As a result, Logistics UK has consistently called for a further 6p per litre cut, which it estimates would result in an average saving of £2,830 per year, per 44-tonne truck. For the 99% of the road logistics industry who are SMEs, they may have no choice but to pass on these costs to consumers and for key workers, including those who work in logistics, the cost of travelling to work is a major cost-of-living issue.” 

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